Equity mutual funds attracted inflows of Rs 28,054 crore in December, registering a decline of over 6 per cent from the previous month, data released by industry body AMFI showed on Friday.
The moderation in equity inflows came alongside a marginal contraction in the mutual fund industry’s overall asset base, with total assets under management (AUM) slipping to Rs 80.23 lakh crore in December from Rs 80.80 lakh crore in November. The decline reflected the impact of heavy withdrawals from debt schemes.
Overall, the mutual fund industry recorded net outflows of Rs 66,591 crore during the month, largely driven by steep redemptions from debt funds, even as equity and gold schemes continued to attract investor interest.
Equity inflows softened from Rs 29,911 crore in November but remained higher than the Rs 24,690 crore recorded in October. Most equity sub-categories continued to see positive traction in December, with the exception of dividend yield funds and equity-linked savings schemes (ELSS).
Flexi-cap funds emerged as the top-performing equity category, garnering net inflows of Rs 10,019 crore, up from Rs 8,135 crore in November, underscoring their growing appeal amid uncertain market conditions. Mid-cap funds followed with inflows of Rs 4,176 crore, while large and mid-cap funds attracted Rs 4,094 crore. Small-cap funds saw inflows of Rs 3,824 crore, and large-cap funds drew Rs 1,567 crore.
In contrast, ELSS and dividend yield funds recorded net outflows of Rs 718 crore and Rs 254 crore, respectively, indicating profit-booking and seasonal tax-related adjustments.
Debt mutual funds, meanwhile, witnessed a sharp outflow of Rs 1.32 lakh crore in December, significantly higher than the net outflows of Rs 25,692 crore seen in November, pulling the overall industry into negative territory.
Amid the divergence in fund flows, investors also showed renewed interest in safe-haven assets. Gold exchange-traded funds (ETFs) recorded net inflows of Rs 11,647 crore in December, sharply higher than Rs 3,742 crore in November and Rs 7,743 crore in October.